Damascus: Some Syrian cities have been persistently roiled by protests; but the two biggest cities, Damascus and Aleppo, have seen much smaller demonstrations because the cities' business communities continue to favour the government, says Nabeel Sukkar, a former World Bank economist who now heads an economic consulting firm in Damascus.

Drastic drops in tourism revenue and biting sanctions have taken a toll on the Syrian economy. While Syria's gross domestic product grew by 3 per cent last year, the IMF predicts a negative 2 per cent this year. However, large- and medium-sized businesses, which the West hopes to turn against the regime with its sanctions, remain largely supportive of the Bashar Al Assad regime.

Pragmatic

Syria's big business elite is closely intertwined with the ruling Baath Party through financial and family ties. Disloyalty to the government can mean not only loss of lucrative government contracts, but political isolation and even jail.

Sukkar says big business leaders are pragmatic. "They expect the unrest to end sooner or later. The regime is well entrenched. The army is certainly loyal to the government."

However, some small businessmen, suffering financially because of the tourism decline and sanctions spurred by the regime's crackdown, have shifted to the opposition.

The owner of a clothing business in Damascus' main souk says he used to be a strong supporter of Al Assad, but he blames the government for the collapse in tourism and the general decline in business activity. The business owner, who asked to remain anonymous, says he has had only one foreign customer in the last three months. They are usually the mainstay of his business.

Crony capitalism

Conflicting attitudes towards the Al Assad government date back to economic changes that began in 2004, when Syria shifted from a centrally managed economy to a more privatised one. The business elite benefited as the government allowed creation of private banks, insurance companies, and an airline.

The growth of large corporations in turn spurred creation of small- and medium-sized companies. Government policies created economic growth and loyalty among business leaders.

But the new liberalisation policy also amplified Syria's system of crony capitalism, leading to charges of widespread corruption.

Demonstrators have singled out Rami Makhlouf, for example, a cousin of President Al Assad and owner of the country's largest cell phone company. Critics say he's made tens of millions of dollars due to family connections.

Bouthaina Shaba'an, a top adviser to the president, admits that corruption remains a serious problem in Syria.

— Christian Science Monitor